Sri Lanka’s remittance flow projected to fall by 19%, WB predicts

The remittance flow to Sri Lanka is projected to decline by 19% due to the economic crisis induced by Covid-19 pandemic and shutdown, according to a World Bank report published yesterday (22). As per the WB report, remittance could come down to US $ 5.4 billion, from US $ 6.7 billion recorded in 2019. In the report titled “COVID-19 Crisis Through a Migration Lens”, WB also warned that not only Sri Lanka, but all the countries around the world will be hit by the deceleration in remittances. Remittances to South Asia are projected to decline by 22% to $109 billion in 2020, following the growth of 6.1% in 2019 while the global remittances are projected to decline sharply by about 20%, the report said. It also said that the remittances to low and middle-income countries (LMICs) are projected to fall by 19.7%. “The projected fall, which would be the sharpest decline in recent history, is largely due to a fall in the wages and employment of migrant workers, who tend to be more vulnerable to loss of employment and wages during an economic crisis in a host country,” WB said.